Go rural, is the theme of every big corporation today. While FMCG companies eagerly wait for the post-monsoon rural demand to boost their sales, bank, which now sells myriad financial products, are gradually realising the potential of rural areas. Several corporations are re-orienting their growth strategies–ITC’s e-choupal and Hindustan Lever’s Project Shakti for example–to bring villages to the centre of their planning.
Kautilya operated from this principle to manage his treasury. “Wealth and power comes from the countryside, which is the source of all activities” (7.14.19)
Going rural has two benefits. First, countryside is the place where raw material is available in plenty. Minerals, food crops, labour all find their sources in the countryside. Second, it is also a ready market for volume business. India even today lives in villages. Be it the soft drinks, the mobile phones or the insurance industry all have already made their way to penetrate deeply into the rural sector.
In the second book of Arthashastra, chapter 8, verse 3, Kautilya points out various elements which contribute to the increase in the treasury.
Increase in commerce and trade
Commercial activities recycle the wealth of a nation. It helps the wealth to flow from one sector to the other, from one geographical area to another. Trading helps in wealth being circulated from one nation to another. Exports and imports are the lifeline of any economically developing nation.
Arresting crime such as theft and robbery
Monitoring and controlling theft is essential. A system of checks and counter checks are necessary to protect the loss in treasury. Theft can happen internally in an organisation or due to external elements.
A lot of unseen and unknown factors affect the economy of a nation, organisation and also individuals. The board of directors should consider all these aspects, under the ‘Risk Management Plan’ of an organisation.